Interest on bonds must be paid in full as scheduled in the bond indenture even when the corporation operates at a loss.

Name: Interest on bonds must be paid in full as scheduled in the bond indenture even when the corporation operates at a loss.
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Question

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Bondholders have priority claim on a corporation's assets and are entitled to receive interest payments as per the bond indenture, regardless of the corporation's profitability.

Interest on Bonds Must Be Paid in Full as Scheduled